Illinois State Law exam study guide with
100% correct answers
Illinois transfer tax - ANS Illinois transfer tax is $.75 per $500 of sales price, or portion
thereof and is paid by the seller. $.50 goes to the state and $.25 is retained by the county where
the property is located. $151,050 divided by $500 = 302.10. In this case, the .10 indicates we
have a portion of the next $500 of sales price in addition to the 302 number. As the tax is $.75
per $500 of price, 303 times $.75 = $227.25 for transfer taxes.
Escheat - ANS Real property escheats to the county where it is located. Personal property
escheats to the state.
Which of the following are principal meridians located in Illinois? - ANS 3rd and 4th only
Illinois resident, dies intestate leaving his wife, two sons, and two daughters. Which of the
following describes how the property will be distributed? - ANS In Illinois, anyone dying
without a will (intestate) will have their estate divided by rules of "intestate succession." In this
situation, those guidelines call for the wife to get half and the children to split the other half.
Tenancy by the entireties - ANS Very similar to joint tenancy, with the difference being that
the owners must be husband and wife
Which of the following activities could cause an Illinois licensee to be disciplined? - ANS
Failure to pay state taxes, along with failure to pay court-ordered child support or repay student
loans, can result in license suspension or revocation.
The largest monetary penalty, per transaction, for a license law violation in Illinois is: - ANS
$25,000 is the largest fine that can be imposed by DFPR per transaction.
The lot is 200' wide and 500' deep. Zoning regulations stipulate that the lot must be at least 2
acres to be able to build on it. Would a home be allowed to be built on this lot? - ANS 200' x
500' = 100,000 square feet for the lot. 100,000 square feet divided by 43,560 (which is the
square feet per acre) = 2.3 acres for the lot size. As this lot is over 2 acres, a home could be
built on the lot.
Illinois leasing agent licenses may be obtained with how many classroom hours and must be
completed within how many days of beginning leasing agent activity? - ANS The class is 15
hours and a candidate must successfully complete the course and pass the state exam within
120 days of actually starting work.
, Which of the following is true of Illinois real estate transaction records? - ANS Illinois
generally requires records to be kept a total of five years, including all active and pending, as
well as the most recent two years of closed transaction files to be kept at the office. Previous
records may be stored offsite.
Under what conditions may an unlicensed tenant receive a referral fee from an owner or
property manager? - ANS Illinois law allows unlicensed tenants to refer up to 3 prospects in
a 12 month period for their building or complex and receive up to $5,000 or two month's rent,
whichever is less, in that 12 month period.
Broker Fernando has been licensed for 3 years. For his next broker license renewal he will need
12 hours of continuing education. Which of the following statements is true regarding his
required continuing education? - ANS Brokers must take a specific 4-hour core class plus 8
hours of electives. One hour of the electives must cover sexual harassment.
Sam is an investor and owns a portion of a limited partnership that owns many pieces of real
estate. Wishing to sell his interest, he contacts Broker Bob. In Illinois, what will Broker Bob need
to do this? - ANS A securities license is required to buy and sell portions of a partnership,
shares of stock in a corporation, real estate investment trusts and most syndications. The
investment is in a security, not technically real estate.
A property management company has a management agreement that is good for one year, and
automatically renews for an additional year, unless the owner gives written notice of termination.
In Illinois, this is: - ANS Automatic listing renewals are now allowed in Illinois as long as the
owner is given a right to terminate at least annually with no more than 30 days prior written
notice.
earnest money - ANS Earnest money must be deposited into escrow the next business day
after all parties have signed the contract.
Except for Cook County, residential real estate in Illinois is assessed at what percentage of its
fair market value? - ANS Outside of Cook County, residential property is assessed at 1/3 of
its fair market value. In Cook County, it is assessed at 10%.
A tenant lives in a 100-unit apartment building in Southern Illinois. When he vacates the
apartment, he can expect: - ANS Apartment complexes with more than five units must
return deposits within 30 days and complexes with more than 25 units must pay interest on
those deposits, if held more than six months.
Seller S enters into an exclusive listing agreement with Discount Broker B. What minimum
services must B perform? - ANS Accept offers on behalf of the seller, assist with making
counteroffers and answer questions about the offers
100% correct answers
Illinois transfer tax - ANS Illinois transfer tax is $.75 per $500 of sales price, or portion
thereof and is paid by the seller. $.50 goes to the state and $.25 is retained by the county where
the property is located. $151,050 divided by $500 = 302.10. In this case, the .10 indicates we
have a portion of the next $500 of sales price in addition to the 302 number. As the tax is $.75
per $500 of price, 303 times $.75 = $227.25 for transfer taxes.
Escheat - ANS Real property escheats to the county where it is located. Personal property
escheats to the state.
Which of the following are principal meridians located in Illinois? - ANS 3rd and 4th only
Illinois resident, dies intestate leaving his wife, two sons, and two daughters. Which of the
following describes how the property will be distributed? - ANS In Illinois, anyone dying
without a will (intestate) will have their estate divided by rules of "intestate succession." In this
situation, those guidelines call for the wife to get half and the children to split the other half.
Tenancy by the entireties - ANS Very similar to joint tenancy, with the difference being that
the owners must be husband and wife
Which of the following activities could cause an Illinois licensee to be disciplined? - ANS
Failure to pay state taxes, along with failure to pay court-ordered child support or repay student
loans, can result in license suspension or revocation.
The largest monetary penalty, per transaction, for a license law violation in Illinois is: - ANS
$25,000 is the largest fine that can be imposed by DFPR per transaction.
The lot is 200' wide and 500' deep. Zoning regulations stipulate that the lot must be at least 2
acres to be able to build on it. Would a home be allowed to be built on this lot? - ANS 200' x
500' = 100,000 square feet for the lot. 100,000 square feet divided by 43,560 (which is the
square feet per acre) = 2.3 acres for the lot size. As this lot is over 2 acres, a home could be
built on the lot.
Illinois leasing agent licenses may be obtained with how many classroom hours and must be
completed within how many days of beginning leasing agent activity? - ANS The class is 15
hours and a candidate must successfully complete the course and pass the state exam within
120 days of actually starting work.
, Which of the following is true of Illinois real estate transaction records? - ANS Illinois
generally requires records to be kept a total of five years, including all active and pending, as
well as the most recent two years of closed transaction files to be kept at the office. Previous
records may be stored offsite.
Under what conditions may an unlicensed tenant receive a referral fee from an owner or
property manager? - ANS Illinois law allows unlicensed tenants to refer up to 3 prospects in
a 12 month period for their building or complex and receive up to $5,000 or two month's rent,
whichever is less, in that 12 month period.
Broker Fernando has been licensed for 3 years. For his next broker license renewal he will need
12 hours of continuing education. Which of the following statements is true regarding his
required continuing education? - ANS Brokers must take a specific 4-hour core class plus 8
hours of electives. One hour of the electives must cover sexual harassment.
Sam is an investor and owns a portion of a limited partnership that owns many pieces of real
estate. Wishing to sell his interest, he contacts Broker Bob. In Illinois, what will Broker Bob need
to do this? - ANS A securities license is required to buy and sell portions of a partnership,
shares of stock in a corporation, real estate investment trusts and most syndications. The
investment is in a security, not technically real estate.
A property management company has a management agreement that is good for one year, and
automatically renews for an additional year, unless the owner gives written notice of termination.
In Illinois, this is: - ANS Automatic listing renewals are now allowed in Illinois as long as the
owner is given a right to terminate at least annually with no more than 30 days prior written
notice.
earnest money - ANS Earnest money must be deposited into escrow the next business day
after all parties have signed the contract.
Except for Cook County, residential real estate in Illinois is assessed at what percentage of its
fair market value? - ANS Outside of Cook County, residential property is assessed at 1/3 of
its fair market value. In Cook County, it is assessed at 10%.
A tenant lives in a 100-unit apartment building in Southern Illinois. When he vacates the
apartment, he can expect: - ANS Apartment complexes with more than five units must
return deposits within 30 days and complexes with more than 25 units must pay interest on
those deposits, if held more than six months.
Seller S enters into an exclusive listing agreement with Discount Broker B. What minimum
services must B perform? - ANS Accept offers on behalf of the seller, assist with making
counteroffers and answer questions about the offers
